What Is a Stewards Fund and How Does It Work?

The Barnabas Foundation Stewards Fund helps you streamline your charitable giving while providing a variety of tax advantages.

Step 1: Establish your account

When you are ready to open your Stewards Fund account, call Barnabas Foundation and our staff will guide you through the process and answer your questions about the Stewards Fund. Your call will be handled in strict confidence. Just complete the Stewards Fund Agreement online, then print, sign and send back to us by return mail to our headquarters in Tinley Park, IL. (We are required by law to keep your original signature on file).

Step 2: Fund your account

To fund your account, you will need to make an initial, irrevocable gift of $10,000 or more in cash, securities or other types of long-term appreciated assets. The most common choices are:

  • Cash
  • Marketable Securities
  • Real Estate
  • Privately-Held Stock

Next, determine if the account will be a joint or individual account and choose a name for the account. You receive an immediate tax deduction at the time you make your gift to Barnabas Foundation.

Step 3: For accounts over $50,000, you may recommend how you would like your funds to be invested.

If your initial gift is $50,000 or more, you may recommend how to allocate the funds in your account across our four different investment funds. Accounts under $50,000 are invested in our cash equivalent fund.

Step 4: Recommend how you would like to distribute your funds to your favorite charities.

Use our Online Grant Recommendations (distributions) form or fax/mail your Grant Recommendations form to us at our headquarters in Tinley Park. This is the last step prior to providing support to a charity.

Step 5: Leave the paperwork to us!

We prepare and send checks to your approved charities as identified in your Grant Recommendations. Statements are mailed to you for each month you have activity in your account. Your year-end statement summarizes all your charitable activity in one convenient report.

Personal Benefits of a Stewards Fund Account

  • Timing - You may time your gift to gain the greatest tax advantage.
  • Flexibility - Using the Stewards Fund simplifies gifting non-cash assets to several charitable organizations.
  • Tax Benefits - Avoid capital gain tax on contributions of long-term appreciated assets.
  • Planning Expertise - You benefit from the knowledge and expertise of the Barnabas Foundation staff in managing and liquidating significant non-cash assets.
  • Investment Expertise - Accounts over $100,000 gain access to nationally-recognized investment managers to manage the account's assets.
  • Privacy - You may decide to give anonymously whenever you choose to do so.
  • Alternatives - Endowment accounts may be used to meet long-term family stewardship goals rather than establishing more costly and complex private foundations.
  • Low Costs - Barnabas Foundation's unique structure as a member-supported organization benefits you with lower administration costs.

Tax Benefits of a Stewards Fund Account

  • Immediate Tax Deduction - Your contributions to the Stewards Fund are tax deductible in the year they are made.
  • Avoid Capital Gain Tax - You can give more to charity if you give the right asset. By gifting a long-term appreciated asset, you receive a deduction for the fair market value and you avoid the capital gain tax on the appreciation.
  • Maximize Contributions – Since Barnabas Foundation is a public charitable organization, you are allowed the most beneficial tax treatment available.
  • Cash - deductible up to 50 percent of adjusted gross income, with a carry forward of five years.
  • Appreciated Assets - deductible up to 30 percent of adjusted gross income, with a carry forward of five years.
  • Simplified Record-Keeping - You will receive a tax receipt for every contribution you make. You will also receive a year-end statement that summarizes all your contributions for the year.

Types of Assets You Can Give

Barnabas Foundation allows you to gift a number of different assets to accomplish your charitable giving. This is important for you, the donor, because it allows you to gift the asset that provides you the best tax advantage.

In addition to cash or marketable securities, we are one of the few Foundations that accept non-liquid assets. Examples of these are:

  • Real Estate
  • Business Interests
  • Life Insurance
  • Tangible personal property
  • Commodities 
  • IRA or other retirement assets
  • Bequest from a Will or Trust

Certain restrictions and complexities surround each type of asset, so call us and we can help you gift the asset that works the best for your situation.